While OpenAI currently leads the race as the world’s most valuable startup with a staggering $157 billion valuation, autonomous electric flying taxis are also poised to reshape the future of technology and urban mobility. With the rise of electric vertical takeoff and landing (eVTOL) vehicles, notable players in this space include Volocopter, Wingcopter, and Joby Aviation, each working on innovative designs and technologies to revolutionise how we navigate our cities.
BETA Technologies, a Vermont, US-based electric aerospace company, has landed $318 million in Series C equity capital. QIA (Qatar Investment Authority), a global investment authority led the round alongside several existing investors, including Fidelity Management & Research Company and TPG Rise Climate, increasing their ownership in the company. In addition, Longtime customer United Therapeutics has also joined this round as an investor.
This oversubscribed financing round follows the $375 million Series B funding round raised in 2022 and brings the total raised to more than $1 billion to date. While the current valuation is yet to be disclosed, it is said to have increased the valuation relative to prior equity capital raises.
How will BETA Technologies use the investment?
The capital will be used to propel the certification of BETA’s ALIA CTOL, ALIA VTOL, and electric motors. It will also directly support the continued ramp-up of production and delivery of the company’s aircraft and chargers to customers as they begin to operationalise electric aviation.
“At QIA, we seek out companies that are well-positioned to become category leaders by addressing critical challenges with innovative solutions,” said Mohammed Al-Sowaidi, Chief Investment Officer for Americas at QIA. “BETA is a leader in the electric aviation market and our participation in this funding round is fully aligned with QIA’s efforts to invest in the companies that are making the energy transition a reality.”
For those interested, here are some key facts about BETA Technologies and its journey so far.
Who is behind the company?
In 2017, Kyle Clark, founder and CEO of BETA Technologies, met with entrepreneur and early BETA supporter Martine Rothblatt to share ideas on electric aviation. Clark is an experienced pilot, engineer, and entrepreneur with a degree in Applied Math from Harvard University. He was previously the director of engineering at Dynapower.
To become the company’s first test pilot, he learned to fly helicopters and earned Federal Aviation Administration (FAA) qualifications for a powered lift rating.
Greener and cheaper approach to air commute
BETA’s all-electric aircraft, which are optimised for payload and range, are positioned at the centre of its vision to make air transportation more reliable, greener, and cheaper. The company is certifying two variants of its all-electric aircraft with the FAA: ALIA CTOL, which uses a runway to take off and land conventionally, and ALIA VTOL, which is runway-independent as it takes off and lands vertically.
These aircraft share structural similarities, and both leverage BETA’s high-performance electric propulsion technologies and fly-by-wire flight control systems. The company plans to certify cargo and passenger configurations of both aircraft. It will make them suitable for commercial and military customers.
The ALIA-250 is an eVTOL aircraft designed for cargo, medical transport, and other logistics applications. Unlike many eVTOL models aimed at passenger transport, the ALIA focuses on practical use cases that require reliable, emission-free air transport over regional distances. Its unique shape is inspired by the Arctic tern bird, known for its long migratory flights. This bird-like design enhances aerodynamic efficiency, helping the aircraft achieve longer flight ranges on electric power.
The aircraft can carry a payload of up to 1,400 pounds and fly up to 250 nautical miles on a single charge, making it suitable for both urban and regional logistics. As a fully electric aircraft, the ALIA-250 operates with zero emissions, aligning with BETA’s goal of promoting sustainability in aviation. Its battery can be recharged in about an hour, minimising downtime between flights.
BETA is actively working with the FAA to certify the ALIA-250, targeting commercial operations by 2025 and the VTOL in 2026.
Partnerships for real-world testing
BETA Technologies has established partnerships with companies like UPS, United Therapeutics, and the U.S. Air Force to test and evaluate ALIA’s effectiveness in real-world conditions for logistics and potential defense applications.
It has been flying its aircraft and charging on its infrastructure for more than four years, operating in the busiest U.S. airspace, crossing international borders, and completing deployments with the U.S. Department of Defense. The company has demonstrated reliability, proven cost reductions compared to fuel-based aircraft, and achieved industry-first milestones such as the first crewed transition of a production-intent eVTOL.
Commercialisation of other products
Its approach to commercialisation includes owning and controlling the key enabling technologies for electric aviation, including the electric motor, inverter, battery packs, high voltage distribution, and safety-critical flight controllers. It partners with best-in-class and legacy aerospace suppliers on other components. This approach has optimised production timelines, clarified certification pathways, and diversified revenue streams within BETA’s business.
BETA is the only producer of UL-certified grid-tied charging systems for aircraft, and their chargers have been adopted by multiple customers including several other aircraft manufacturers. It is selling charging systems as well as building a network of charging systems at airports across the US.
Large production unit
BETA is expanding its manufacturing and R&D facilities in Vermont, including a large production plant in Burlington. Its production facility can produce up to 300 aircraft per year. It has already begun production of aircraft to be delivered to customers in the coming months. The business will continue to increase production rates over the following 18-24 months.
As it boosts production and certification efforts, BETA will continue working closely with its customers to ensure the delivery of a robust pilot and maintenance training program, and aftermarket support systems beginning day one. Along with its partners, the company will ensure electric aviation improves operators’ business economics, provide a path to sustainable aviation, and benefit all types of communities.
“This investment validates progress and milestones toward commercialising electric aviation,” said Kyle Clark, BETA’s Founder and CEO. “For years, we’ve flown across the country and deployed with partners to prove the safety and reliability of our aircraft and chargers. Now, we’re beginning to produce products for our customers. This continued belief and trust in this team and our vision will be good for the investors and good for the world. We are grateful for their shared vision.”
The rise of eVTOL industry
The eVTOL market is rapidly expanding, projected to reach approximately $39 billion by 2033, up from $1.7 billion in 2023, with an impressive compound annual growth rate (CAGR) of 36.8%. Geographically, North America holds a dominant market share of 36.5%, with significant growth potential across Europe and the Asia Pacific due to urban congestion and increased interest in sustainable transportation. The market also sees varied propulsion systems, with battery-electric options gaining traction due to cost and emissions benefits.
Despite these signs of growth, the eVTOL market faces challenges such as high production costs. A recent example of this is the bankruptcy of Lilium after the German government denied its application for a €50 million loan guarantee.
Not only the US, but the whole world is looking forward to this industry. Uber is collaborating with Aurora Flight Sciences, a Boeing subsidiary, to develop its flying taxi service. Also, Chinese EHang is partnering with aviation supplier FACC for its air mobility solutions and the European aircraft manufacturer Airbus is working on its own flying taxi initiatives.
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